2016-17 PEOPLESOFT YEAR-END CLOSING WORKSHOP District Financial Services Financial Accounting & Reporting May 24, 2017
PeopleSoft Closing Workshop Agenda PowerPoint Presentation 1. General Accounting Information 2. Closing Schedules 3. Checklists 4. Closing Entries & Accruals 5. Indirect Costs 6. Accounting Updates Demonstrations 1. OPEB Accounting 2. CAT Form
SECTION 1 General Accounting information
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Business Advisory Consultants 9
SECTION 2 Closing Schedules
11 Important Dates- 16/17 Closing June 27 th by 2 p.m. All Deposits to Wells Fargo June 29 th by Noon 1617 Commercial Warrants June 29 th by 10 a.m. Auditor s Transfers to FA
12 Important Dates- 16/17 Closing July 10 th by 5 p.m. Finalize all 1617 PO s Enter goods received by June 30th July 11th Financial Accounting: Receipt Accrual PO Rollover
13 Important Dates- 17/18 Processing July 1st New FY activity begins No need to wait 3 days! NEW In PeopleSoft! July 6th First day commercial warrants are issued for FY 17/18 July 17 th Period 12 closes at 5 p.m.
14 Customer Resource Center (CRC )Training Support Sessions for Year End Closing Purchasing Inventory Finance Open Labs CRC Website http://crc.sdcoe.net/calendar/yearendclosing
SECTION 3 Checklists
16 Closing Steps Before June 30th Clear prior year accruals: Accounts receivable Liabilities Due-to (object 9610)/Due-from (object 9310) - Must be repaid in same fiscal year or following fiscal year if transfer takes place within last 120 days of fiscal year Clear Suspense through June
17 NEW Journal Source PAJ Recommended steps Payroll Adjustments 1. Download & save PEDR each month 2. Filter for adjustments a. Suspense b. Funding changes c. Year-end adjustments (ie. EPA) 3. Enter PAJ journal a. Journal Header Description: justification for payroll adjustment b. Journal Line Description: Employee name c. Journal Line Reference: Employee ID 4. Print & file for auditors along with print-out of applicable PEDR lines
18 Payroll Adjustments- continued Interfund Payroll Adjustments (transfers that cross funds) Recommended steps 1. Download & save PEDR each month 2. Filter for adjustments a. Suspense b. Funding changes c. Year-end adjustments (ie. EPA) 3. Enter PAJ journal a. Journal Header Description: justification for payroll adjustment b. Journal Line Description: Employee name c. Journal Line Reference: Employee ID d. Offset: Due to/ Due from other funds (9310 & 9610) 4. Enter AT journal to clear DTF entries 5. Print & file for auditors along with print-out of applicable PEDR lines
19 Closing Steps Before June 30 th Continued Inventory Conduct physical count Adjust G/L to match Actual Inventory For stores inventory, see CRC Training Guide IN2 Inventory Count & Reconciliation http://crc.sdcoe.net/resources/peoplesoft/guides
20 Closing Checklist Posted on the Financial Accounting website under Quick Links http://www.sdcoe.net/business-services/financial-services/financialaccounting/pages/financial-accounting.aspx Run FAR queries, and check by fund/resource: Suspense objects (7999XXX & 8999XXX) are zero Contributions (8980s & 8990s) net to zero by fund Suspense resource 9999 is zero (Pre) Encumbrances are zero 50% of objects 8081-8082 have been transferred to 8691 Debit(+) 8089 Credit(-) 8691 Object 9140 cash collected awaiting deposit is zero All Prior year accruals are zero Object 9910s payroll holding accounts is zero
21 Closing Checklist (continued) Run FAR queries, and check by fund/resource: Asset accounts have debit balances Objects 9100 9399 Liabilities have credit balances Objects 9500 9699 Verify expenditures in resource 8150 meet requirements For 2016-17 Lesser of: a) 3% of 16/17 total general fund expenditures (GFE) (E.C. 17070.75) b) FY 14/15 contribution to resource 8150 For 2017-18 through 2019-20 Greater of: a) Lesser of 14/15 amount or 3% of total GFE b) 2% of total GFE
22 Closing Checklist (continued) SACS Technical checks are passed Review explanations with your district s Consultant or Financial Accounting
SECTION 4 Closing Entries & Accruals
24 State Aid Accruals 1. Clear PY Accruals: LCFF February June Financial Accounting posts PY recomputations & adjustments to suspense Clear to PY accrual (A/R 9290 or A/P 9590) Difference goes to object 8019 2. EPA PY Adjustment posted to suspense in March AT A004530 3/24/17 Clear to object 8019 Don t forget to post the EPA Expenditure report on your district website
25 Year-end Calculation: LCFF Accrual- Receivable Projection Actuals lower LCFF Apportionment: P-2 Property Taxes $ 50,000 $ 48,000 Current Year EPA 25,000 24,000 State Aid 25,000 25,000 Total $ 100,000 $ 97,000 LCFF Calculator amount $ 100,000 Receivable due from State $ 3,000 Receivable from the State: Res Goal Func Obj DR CR Due from Grantor Governments 0100 0000 0000 9290 $3,000 LCFF 0100 0000 0000 8011 $3,000
26 Year-end Calculation: LCFF Accrual- Liability Projection Actuals lower LCFF Apportionment: P-2 Property Taxes $ 50,000 $ 55,000 Current Year EPA 25,000 28,000 State Aid 25,000 25,000 Total $ 100,000 $ 108,000 LCFF Calculator amount $ 100,000 Receivable due from State $ (8,000) Liability due to the State: Res Goal Func Obj DR CR LCFF 0100 0000 0000 8011 $8,000 Due to Grantor Government 0100 0000 0000 9590 $8,000
27 Accrual Journal Entries in PeopleSoft NEW In PeopleSoft!
28 Reversing Journal Entries in PeopleSoft NEW In PeopleSoft!
29 NEW In PeopleSoft! Payroll Accruals Districts will enter payroll data in July Any FY 1617 time MUST be entered with a combo code (ie. June hourly, overtime, adjustments, VPO, etc.) July payroll runs All time worked prior to July will be posted to June as an accrual This entry will automatically reverse in July The accrual reversal entry will clear the expenses in July and move them to 9510000
30 STRS, PERS, SUI Accruals FIS Process STRS, PERS, & SUI AT s are posted to suspense in July District accrues amounts in June Debit 9910 Credit 9510 District clears suspense to accrual Debit 9511 Credit 7999 PeopleSoft Process STRS, PERS, & SUI AT s are part of post cash process No-Post AT s No suspense for the district to clear District accrues amounts in June as a reversing entry Debit 9910 Credit 9510 NEW In PeopleSoft!
31 Liability Accruals FIS Process Accrue to object 9510 Beginning Balances roll to 9511 Pay liabilities out of 9511 Clear remaining liabilities out of 9511 PeopleSoft Process Accrue to object 9510 Beginning Balances roll to 9510 District options: 1. Pay liabilities out of 9510 2. DO journal to reclass Beg Bal to 9511 & pay out of 9511 3. Reversing journal entries NEW In PeopleSoft!
32 Receipt Accrual & PO Rollover NEW In PeopleSoft! PURPOSE: To accrue the liability for items received by June 30 th and roll PO s from 1617 to 1718 By July 10 th at 5 p.m. 1. Enter receipts with June date 2. Close all PO s that should not roll to 1718 3. Final 1617 weekly PO close process runs July 10th On July 11th, Financial Accounting will run two processes: 1. Receipt Accrual 2. PO Rollover
33 Receipt Accrual & PO Rollover Receipt Accrual Opt-out option please email Financial Accounting by Friday June 23 rd with request to opt-out PO Rollover NO opt-out option CRC Finance Year End Closing Guides
34 Liability Accruals- Receipt Accrual Important Notes: Applies to districts with receiving required Purchase Orders Applies to PO s with line items (physical goods to be received) Applies to items physically received by June 30, but not paid by June 30 For all items received at a district location by June 30 th, enter receipts in PS with June date (ie. 06/30/2017) Must be completed by July 10 th at 5 p.m. Financial Accounting will run the Receipt Accrual process on July 11 th and e-mail report to districts with results
Liability Accruals- Receipt Accrual 35
Liability Accruals- Receipt Accrual 36
37 Liability Accruals- PO Rollover Important Notes: Applies to PO s in Approved or Dispatched status Process identifies all PO s ready to roll Closes encumbrances in PY Closes PO s in PY Opens encumbrances in CY Requires valid budget (chartstring) to be set up in new fiscal year Opens PO s in CY Payments can now be applied in new fiscal year
Liability Accruals- PO Rollover 38
39 Requisitions & POs for 1718 Option to input REQs & POs for 17-18 in 16-17 fiscal year See CRC PS Finance Year End Closing Guide v4.4 page 30 for requirements Email SDCOE Financial Accounting to open period
Chartfield Configuration 40
SECTION 5 Indirect Costs
42 Indirect Costs Definition: General management costs consist of administrative activities necessary for the general operation of the agency, such as accounting, budgeting, payroll preparation, personnel services, purchasing, and centralized data processing Indirect Cost Rate (ICR): percentage of an organization s indirect costs to its direct costs and is a standardized method of charging individual programs for their share of indirect costs Purpose: standardized, efficient way to recover a share of general management costs from individual (restricted) programs
43 Indirect Costs Approved rates are posted on the CDE web site: http://www.cde.ca.gov/fg/ac/ic Must use the lesser of the CDE approved rate or a grant stated max each year Food Service programs: use the lesser of the districts approved rate or the statewide average rate of 4.92% for FY 2016/17 7310 must net to zero by function & object at the fund level 7350 must net to zero by function & object between funds
44 Indirect Costs Title I Total Exp. 1000-5999 $ 10,500 Less Obj 5100 (500) Adj Exp. $ 10,000 ICR 6% Indirect Cost $ 600 Sample entry 0100-3010000-1110-7210-7310 $ 600 0100-0000000-0000-7210-7310 $ 600
45 Indirect Costs Food Services Total Exp. 1000-5999 $ 10,500 Less: Obj 5100 (500) Adj Exp. $ 10,000 ICR 4.92% Indirect Costs $ 492 Sample Entry: 1300-5310000-0000-7210-7350 $ 492 0100-0000000-0000-7210-7350 $ 492
SECTION 6 Accounting Updates
47 Donated Food Commodities Object 8221, Donated Food Commodities Record fair market value of donated food commodities in the period when all eligibility requirement are met (typically at the time of donation). Use required beginning 2016-17 (was optional in 2015-16)
48 Prop 39 Energy Fund Resource 6230: California Clean Energy Jobs Act Funding based on approved expenditure plan Districts have been encouraged to complete construction, some times ahead of receipt of funds Funding has not been appropriated in the State budget beyond the current year Does not qualify as Accounts Receivable CDE recommends leaving the resource with a negative ending balance at FYE if district has expenditures, but not revenue Contributions are considered one-way transfer of funds, so this is also not a recommended solution
49 E-Rate Accounting New guidance in 2016 edition of CSAM See Procedure 560 & November 2015 SACS Forum meeting minutes for further information LEA s should now report costs of telecommunications goods & services at gross E-Rate subsidy is local revenue Fund 01, Unrestricted Resource, Object 8699 Federal Programs exception Only NET expenditure should be charged to the Federal resource Remaining expenditure and corresponding E-Rate subsidy should be recorded in General Fund unrestricted
50 STRS On-Behalf Contributions STRS On-Behalf Journal Entry - Resource 7690 Required entry in the District s books before closing CDE created Excel template to create journal entry New Financial Reporting Requirements for Pensions (Dated 02-Jul-2015) http://www.cde.ca.gov/fg/ac/co/ 1617 STRS on-behalf rate: Two Methods of Calculating Rate http://www.calstrs.com/general-information/gasb-67-68-frequentlyasked-questions
STRS On-Behalf Contributions Calculation Utilizing CalSTRS CAFR June 30, 2016 CalSTRS Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2016 http://www.calstrs.com/sites/main/files/file-attachments/cafr2016.pdf 51
STRS On-Behalf Contributions Calculation Utilizing CalSTRS CAFR June 30, 2016 2016-17 STRS On-Behalf Calculation Benefits Funding Component 2.017000% Base Rate 4.31100% EC 22955.1(b)(1)(c) 6.328000% Supplemental Benefit Maintenance Account Component 31,910,000,000 Total Creditable Compensation (Schedule of Contributions From Employers and Nonemployer Contributing Entity [Schedule III] - CAFR June 30, 2016 page 82 52 797,750,000 EC 22954 (b) 2.5% of creditable compensation (72,000,000) EC 22954 (c) Less: $72M 725,750,000 Total State Contributions for SBMA 2.274365% State Contribution for SBMA as % of total creditable compensation 8.602365% Total STRS On-Behalf Rate for 2016-17 8.578248% CDE's preliminary 2016-17 STRS on-behalf rate 0.024117% Variance
STRS On-Behalf Contributions Calculation Utilizing CalSTRS CAFR June 30, 2016 ESTIMATED 2017-18 STRS On-Behalf Calculation Benefits Funding Component 2.017000% Base Rate 4.81100% EC 22955.1(b)(2) 6.828000% Supplemental Benefit Maintenance Account Component 53 31,910,000,000 Total Creditable Compensation (Schedule of Contributions From Employers and Nonemployer Contributing Entity [Schedule III] - CAFR June 30, 2016 page 82 797,750,000 EC 22954 (b) 2.5% of creditable compensation (72,000,000) EC 22954 (c) Less: $72M 725,750,000 2.274365% State Contribution for SBMA as % of total creditable compensation 9.102365% ESTIMATED STRS On-Behalf Rate for 2017-18
STRS On-Behalf Contributions Calculation Utilizing CalSTRS CAFR June 30, 2016 Mock Calculation 54 15,000,000 District's creditable compensation (PERS/STRS Year-to-Date Summary) 8.602365% STRS On-Behalf Rate per June 30, 2016 CAFR Information 1,290,355 District's On-Behalf Contributions Find the STRS reports on SDCOE s Retirement Reporting website: http://www.sdcoe.net/business-services/financialservices/retirement-reporting/pages/retirement-reporting.aspx
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56 OPEB http://www.sdcoe.net/business-services/pages/psexcel.aspx
57 CAT Form http://www.sdcoe.net/business-services/financial-services/financialreporting/pages/forms-and-documents.aspx